The fair market value of your home is important for a bunch of reasons.
First, it helps determine the assessed value, and this number is used to calculate your property taxes. It also helps you figure out how much you could make on your house if you decide to sell it.
In this case, you want your fair market value and assessed value to be as high as they can. The fair market value is usually the listing price that your home will be if you decide to sell it. If you’re staying in your home, you want your property to appraise for less so your property tax bill will be lower.
Home prices are rising due to inflation, and this can mean there might be a chance that your property taxes could increase too. However, multiple reports suggest that around 30-60% of taxable property in the US is over-assessed. This means that people are paying more than they need to on their taxes.
If you think you’re paying too much for your property taxes, it might be a good time to dispute them. When you lower your property value, then you have a good chance of lowering your property taxes and mortgage payments.